February 10, 2017 / 11:32 AM / 5 months ago

Russia's FX buying won't spur inflation if monetary policy tight - cbank

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MOSCOW, Feb 10 (Reuters) - The Russian central bank's dollar purchases will not cause new inflation risks to emerge if monetary policy remains tight, a monthly report on market trends, compiled by the central bank's analysts, said on Friday.

The central bank started buying around $106 million a day earlier this week. The purchases are being undertaken in order to replenish the finance ministry's fiscal reserves, according to the government.

Analysts with the central bank said the purchases of foreign currency will limit the room for the rouble to strengthen, which will also cap a recovery in imports and boost exports.

"Overall it will contribute to a better current account," the central bank's analysts said. (Reporting by Andrey Ostroukh and Elena Fabrichnaya; Editing by Christian Lowe)

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